Considering a hotel franchise agreement?
Then let’s understand the numbers.
The primary benefit of a hotel franchise affiliation is the brand’s ability to generate additional occupancy. Additional brand occupancy is finite and comes at a cost. Many hotel owners are better served by putting those extra resources towards marketing with a professional independent hotel management company versus a hotel franchise agreement.
To simplify any owner’s due diligence, Bellstar Hotels & Resorts offers an easy-to-use calculator that provides hotel owners exactly how many additional room nights are required to break even on those franchise related costs. Our formula factors in capital expenses, loyalty programs, brand marketing fees and many other transactional fees hidden within franchise documents. When considering a franchise over independent management, hotel owners should always ensure any franchisor can prove occupancy increases exceed the breakeven target of additional room nights.
Will a major hotel brand be able to generate enough demand to cover its inherent costs?
Enter your hotel’s key metrics to determine how many additional room nights a major hotel brand will need to bring to maintain current independent profits.
Based on costs and financial data obtained from a leading hotel brand’s 2017 franchise disclosure documents.